Can a Tenant Stop Paying Rent as a Result Of COVID-19?
When the government ordered the closure of all non-essential
businesses, tenants quickly turned to their leases to see if the
pandemic would qualify as force majeure and discharge them from
their rent obligations.
Hengyun International Investment
Commerce Inc.
v.
7614
Québec Inc., 2020 QCCS 2251,
(
Hengyun ) was one of the first Canadian cases
to consider force majeure in the context of COVID-19
government-mandated shutdowns. It sparked hope for tenants that
rent relief was possible.
In
Hengyun, the Landlord and the original Tenant,
VFC, entered into a five-year lease to operate a gym. VFC soon made